Markus Biehl

Research on the potential impact of environmental sustainable development initiatives such as environmental collaboration with the supplier (ECS) on environmental and manufacturing performance is inconclusive. Specifically, it has overlooked the intermediary role that dynamic capabilities play in the relationship between ECS and performance. This explains why previous research, while correct in theory, found conflicting statistical results between environmental collaboration upstream and various performance outcomes. This study examines the following questions: What is the impact of environmental collaboration on manufacturing and environmental performance in outsourcing relationships? Do capabilities mediate the relationship between environmental collaboration and performance? Further, we propose that one particular mediating factor—innovative capabilities (ICs)—can influence the strength of this relationship and thus explain why previous research found conflicting statistical results. This paper uses structural equation modeling to analyze survey data from 247 North American manufacturers that outsourced their manufacturing. IC fully mediates the relationship between ECS and manufacturing performance and partially mediates the relationship between environmental collaboration and environmental performance. These findings enrich existing knowledge as it views ECS through the lens of resource-based theory. Further, we shed light on the crucial role of IC in firms that choose to outsource critical capabilities. From a managerial perspective, the empirical results will inform outsourcing managers making strategic and tactical decisions to achieve desired environmental and manufacturing outcomes.

“We analyze a firm’s investment in environmental process improvement (EPI) to reduce the environmental impact (EI) of its manufacturing processes in relation to various internal firm characteristics and in response to different external regulatory drivers. We provide a deep understanding of how these internal and external forces cause the firm to pursue EPI earlier or later in the planning horizon and at an increasing or a decreasing rate over time. In particular, we show how a regulator can drive different patterns of EPI over time through subsidies for EPI or penalties for EI. We also explore the impacts of two key operational capabilities of the firm—the production‐cost efficiency of EPI and the effectiveness of EPI in reducing EI—on the rate of EPI over time. We demonstrate that improvements in these operational capabilities contrastingly alter the timing of investments in EPI. Lastly, we demonstrate that a firm capable of leveraging EPI to enhance product functionality or command a reputational premium in the marketplace pursues a remarkably different pattern of EPI over time compared to a cost‐focused firm that only responds to regulatory forces.
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Is Safe Production an Oxymoron? Exploring How Firms Manage Safety and Operations

Corporate social performance (CSP) has become a widely applied concept, discussed in most large firms’ corporate reports and the academic literature alike. Unfortunately, CSP has largely been employed as a way of demonstrating corporate social responsibility (CSR) in practice, or to justify the business case for CSR in academia by relating some measure of CSP to some measure of financial performance. In this article, we discuss multiple shortcomings to these approaches. We argue that (1) CSR activities need to be managed and measured as projects and aggregated to the business or corporate level using a project portfolio; (2) appropriate measures need to be identified that move away from reporting the firm’s activities toward quantifying actual social outcomes achieved; and (3) given the types of projects prevalent in CSR, statistical evaluation methods common in other fields (ideally, pre-test post-test control group designs, such as used in medicine or propensity score matching for ongoing or past projects) should be employed to properly measure outcomes. We make a first, albeit imperfect, attempt at using such an approach with data collected on behalf of the Patrimonio Hoy project, a well-publicized CSR initiative carried out by Cemex in Mexico. We show that the results from this data reinforce concerns voiced earlier in this article.